The workshop will bring together academics and policymakers to discuss theoretical and empirical dimensions of macroeconomic policy in the aftermath of the global financial crisis, with special attention to the monetary/fiscal policy mix in the United States and the European Union. The workshop will also look at macroprudential frameworks in the US and the EU and the political economy behind the choices made on the two sides of the Atlantic, and discuss strategies to strengthen the recovery, ensure financial stability, and foster structural reform so as to raise potential growth.
The topics discussed in the workshop will include:
- Similarities and differences in the monetary policy approaches of the Federal Reserve, the European Central Bank, and the Bank of England.
- The very low rate of inflation in the U.S. and the EU and the tools at the disposal of central bank authorities to move inflation back to the desired level.
- The implications of potentially divergent monetary policies in the transatlantic economy in the short term and how to avoid undesired spillovers related to this divergence.
- The role played by fiscal policy to stabilize the economy and support a robust growth path compatible with high public debt.
- How fiscal policy can provide incentives for structural reform and counter secular stagnation-related risks.
- Whether macroprudential frameworks can produce a policy/regulatory mix that significantly strengthens financial stability.
- To what extent cooperation and coordination are desirable between monetary and fiscal authorities to address a systemic crisis, in light of the different political economy and institutional settings.
- The desirable monetary-fiscal policy mix in the transatlantic economy, taking into account possible spillovers on the two sides of the Atlantic.
The workshop will take place at the Federal Reserve Bank of New York, will last one day, and will be articulated into several sections with presentations of selected academic papers, as well as one policy panel.